PPI Complaints Top 2000 Per Day

Sep 16

Hope that the ongoing payment protection insurance (PPI) claims scandal would begin to show signs of abating have been dashed by the latest figures. According to the Financial Ombudsman, complaints about PPI numbered more than 2000 a day in the first quarter of 2013.  While this does represent a drop in the previous quarter, it is still being referred to as a ‘huge number’ in consumer finance circles. With 132,000 complaints received in the period it is clear the saga still has a long way to run.

Recruiting Extra Staff

The sheer number of complaints means that the Financial Ombudsman, as with many other organisations in the finance sector, has had to take on extra staff to handle the claims and complaints about PPI. Indeed, with 1000 staff already dedicated to handling PPI claims complaints, the Ombudsman is in the process of recruiting an extra 2000 to help process them. The situation is particularly worrying, a spokesman said, as the banks have the ability to deal with each claim before it is deemed fit to report it to the Ombudsman, though this happens as many banks reject claims which are later upheld by PPI claims companies or the Ombudsman.

Most Complaints Upheld

The latest figures also show that more than three quarters of complaints are upheld in favour of the consumer, and the instances of people using a PPI claims company to help pursue claims are at an all time high. Such a move means a greater chance of a successful claim, and less stress in terms of getting things underway and done. The banks and other lenders have, so far, set aside over £15billion to cover the cost of claims, this having been prompted by a High Court ruling that any fees on mis-sold PPI policies must be repaid to the customer. So far, the average payment for mis sold policies has been in the region of £3000, although there have been several claims that were considerably in excess of this figure. Lenders have also been told that they must deal with complaints and claims within ‘a reasonable time’, yet the ongoing complaints to the Ombudsman seem to indicate that this is not always being carried out. The banks are in no hurry to pay money back, so we all as consumers need to be.